Negotiations will be suspended for clients from the USA.
Bitstamp, one of the oldest existing crypto currency exchanges, has announced on its website and Twitter that it is discontinuing trading and Ripple deposits (XRP) for all U.S. customers on January 8, 2021 because of the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs.
The SEC case against Ripple alleges that the company paid exchanges to allow „the purchase and sale of XRP“ on its platforms, as Adam Back stressed in a recent tweet. According to The Wall Street Journal, the heart of the lawsuit is whether XRP is a security that should have been registered with the regulator or not.
Since Ripple did not register XRP as a securities offering, the regulator argues that investors did not have adequate information and, as such, the defendants had an unfair advantage.
U.S. customers may withdraw their XRP tokens even after trading has stopped, according to the Wall Street Journal. Bitstamp is the first major exchange to go into action after the announcement of the SEC’s case against Ripple, but some smaller exchanges have already announced‘ that they have abandoned the Bitcoin Circuit. So far, three small exchanges, OSL, Beaxy and CrossTower, have temporarily stopped trading or removed the XRP.
As a result, the price of XRP has dropped 41% at Binance in the last three days and it seems that the drop may be even more severe, with the suspension of activities at Bitstamp.
But not all traders are seeing Ripple’s Calvary and its token as something negative. The trader known as Toshi Desk, states that the time for XRP accumulation is now, as he expects that after this turbulent period the price of the cryptoactive will rise to levels not seen before. Toshi Desk keeps accumulating XRP.